GRT trade ideas
IS THE CORRECTION COMPLETE OR WILL WAVE 5 COMPLETE FIRST?Growthpoint Properties is a diversified property investment holding company incorporated and registered as a public company on 12 October 1987. Growthpoint shares are listed for sale under the Financial Services Real Estate Investment Trust sector of the Johannesburg Stock Exchange (JSE), and the group is today one of the biggest players within the sector. The company boasts a portfolio of 525 properties which provide 6.7 million m² of retail, office and industrial space to leading businesses in South Africa and Australia. They also have a majority stake in 53 Properties which are valued at R22 billion. One of Growthpoint‘s biggest investments is a 50% stake in the properties at Cape Town’s V&A Waterfront, valued at R6.8 billion.
Technicals
As you can see on the chart above, there was a spike down to the 50% Fib retracement level as indicated with the red arrow. This is a strong level of support and the rally from there could continue on upwards if this is the formation. I would not be surprised to see wave 5 complete to the 61.8% Fib retracement level before we see the break to the upside but due to the break of the structure at the top of wave 4, it is also possible that the rally will occur soon.
$GRT could reverse soonGrowthpoint could potentially be forming a bearish flag here. We have run up into the 200 dma as well as the 61.8 fib retracement of the last 6 months swing high and low. Would look for a retracement to at least R24.20 as a first profit target.
growthpoint longOne of the top JSE stocks I would be buying this year.
Projected target would be the 300 mark
Potential buying opportunity on GrowthPoint propertiesGrowthpoint Properties has formed a bullish inverted Head & Shoulders formation over the last couple of days. We broke above the neckline yesterday which triggered the long entry. The market has been kind enough to provide a second opportunity to enter on a retest of the neckline @ 24.00. We have tested the R24.00 level this morning and held so far, and hope to see the stock gain some momentum now to move to the formations target of R25.00
GROWTHPOINT PROP LTD JSEWhat we have currently is a bearish flag, I assume this will be followed by a strong drop in this market down towards the demand zone at the 2261 level, you can enter a sell position around 2371 and take profits at 2261. Alternatively or adding to that position, you can have a buy limit at 2261 taking profits at or around the 2600 area.
